The introduction of the smartphone and other mobile devices, in conjunction with advancements in wireless networks and cloud-based services, has brought a new meaning to the term“mobile home.”Today, it is possible for homeowners to check on their homes regardless of where they may be, provided that an Internet connection is present.
The introduction of the smartphone and other mobile devices, in conjunction with advancements in wireless networks and cloud-based services, has brought a new meaning to the term“mobile home.”Today, it is possible for homeowners to check on their homes regardless of where they may be, provided that an Internet connection is present. While the majority of consumers have yet to embrace the smart home concept, there is no doubt that its adoption is set for rapid growth. According to a recent report by Juniper Research, smart home revenues will reach $71 billion by 2018.
Why Now?
Various forms of home automation have existed over the past 2 decades, but they have been too expensive and troublesome for most homeowners. Today, however, costs are significantly lower, and the ubiquity of mobile devices and the emergence of the app economy have made it easy for consumers to interact with products and services.
Alarm.com has been a part of the evolution to the smart home market, having been first-to-market with some features, said Jay Kenny, VP of Marketing at Alarm.com. “We launched our first mobile app in 2009. That really was a big game changer; the mobile app and mobile device is one of the key things that has driven really rapid adoption of the technology.” Indeed, in the following years, Alarm.com started to see rapid growth—Alarm.com is the largest connected home platform in the U.S.A.
For mobile apps, cross-platform support is crucial—iOS and Android native apps, as well as web apps.“This is extremely important to reach the mass market as consumers can make devices work together and schedule them to run at certain times without having to download additional apps for each device, said Bob Cooper, CMO at Zonoff. Zonoff is behind the technology that powers the Staples Connect platform.
The big trend toward cloud services is also a factor driving adoption for consumers, since they dramatically decrease the cost of ownership, Kenny continued.
In hindsight, it is only natural that consumers who are always connected will want to always have access to devices in their homes.“A lot of companies have observed that opportunity and are now getting into the market,” said Kenny.
Security at its Core
Right now, many consumers are attracted to the direct benefits of a connected device. No products bring direct benefits as security products do, making home security one of the core features of the smart home that is driving adoption. A basic home security system comprises video, sensors and 24-hour alarm monitoring. When an alarm goes off, the police will show up; when there is a fire, firefighters come to put it out. 2 high-growth add-ons to those services are video monitoring and energy management, Kenny said.
Video monitoring is one of the most important components in a modern home security system.“More and more people are adding video cameras to both the outside and inside of their homes. Being able to stream real-time video to a mobile phone is really interesting to people, both from a security perspective and an awareness perspective,” said Kenny.“If you have kids, it's nice to know that they are safe at home and are doing the right things. If you have pets, you also want to know that they are safe and are having fun. Both the awareness and security aspect of the video are really important.”
Even something as simple as a smartphone controlled garage door opener can bring significant convenience and peace of mind to homeowners. Since many Americans enter their home via the garage door, it is not only important to know the status of that entry point, it is also convenient to have the ability to check that status when a homeowner has driven 10 minutes away from home and worries that the door is still open, said, Bob Dahlberg, VP of Business Development at Arrayent. Arrayent's platform powers the home appliances of numerous well-known manufacturers.
Spreading Out From Security
Security is the primary service that consumers value and are willing to pay for, but Alarm.com is also seeing it drive a lot of adoption in thermostats and lighting. According to Parks Associates, nearly two thirds of US consumers are interested in buying a smart thermostat. Dahlberg agrees:“This industry has tipped. If you are in the thermostat business and you don't have a connected thermostat strategy, you are going out of business.”
As for lighting, it is the lowest cost way to impact the home environment. LED bulbs are getting lower and lower cost every day, getting close to compact fluorescents. ZigBee vendors are quoting ZigBee SoCs at less than $1 in 2015,”Dahlberg said. “The combination of LED and connectivity means lighting control (on, off, dim) will be very easy to install.”
Low cost is important because while there are vertical opportunities for all connected products, the near-term value of smart appliances is all around a collection of small conveniences; no single feature alone is compelling in its own right, Dahlberg continued.
UniKey's VP of Sales and Marketing Dirk Wyckoff thinks it is also crucial for the smart home that devices can stand on their own when integrating devices into a single intelligent system.“For a product to have mass appeal, the product's value proposition to the consumer must be singular in nature, meaning it must stand on its own without necessary integration into a larger system that is typically reserved for services with monthly fees. The product must be simple and elegant in both interface and appearance.”UniKey developed the technology behind the popular smart lock Kwikset Kevo.
A home full of devices that can interact with each other for the benefit of the user is indeed attractive. The concept of energy management has become popular—not just controlling appliances via a mobile app, but the integration of those appliances with the rest of the home, Kenny said. “For example, when I arm my alarm system, the thermostat automatically adjusts. If I leave my backdoor open by mistake, I can have the system adjust to that, too.”
Related article:Smarthome, pulling it all together
** This is a part of a&s SMAhome magazine and mySMAhome.com coverage. For free subscription, please click here.